The big question: Will the Fed now dial back the size of its rate hikes for the rest of the year? 1

Wednesday's rate hike is expected to ripple through the economy, with rates rising sharply for credit cards, home equity lines of credit and other loans.

A sluggish economic mood has also become a major political problem for the Biden administration heading into the midterm elections.1

Policymakers are trying to keep pace through the strong job market and keep American workers employed,

However, the grim reality is that the tight labor market will have to be loosened for the Fed to make any progress on inflation

Democrats continue to blame stimulus efforts and have opposed more federal spending.

He said it is likely the Fed could slow the pace of interest rate hikes in the coming months as it raises unemployment rates.

This process is likely to include periods of low-trend economic growth and some softening of labor market conditions

The rise in interest rates is designed to cool demand in the economy

Powell's argument is that the trade-off needs to come as quickly as Joe Brusuelas, chief economist at RSM, said